Michigan State University today announced its endowment posted strong investment returns for the fiscal year ending June 2024 of 15.1% year-over-year and a value of $4.4 billion. The five- and ten-year annualized returns were 12% and 9.3%, respectively.
“A strong endowment allows Michigan State University to provide more opportunities for our students and expands our impact in research and public service,” said President Kevin M. Guskiewicz, Ph.D. “The endowment is integral to the institution’s annual financial picture and is a cornerstone of our vision to enhance the academic experience and drive innovation.”
Over the past five years, the endowment has provided more than $1.13 billion from investment income to directly support the university’s operating budget.
That income supports critical funding for scholarships and endowed professorships, and it helps alleviate certain financial burdens on the institution such as deferred maintenance costs. It also supports faculty research and academic programs, ensuring MSU remains at the forefront of innovation and discovery. A strong endowment supports MSU’s position as one of the top research universities in the world.
“Our strong performance this year came primarily from our large position in U.S. equities and the strong performance of our hedge fund portfolio,” said Philip Zecher, MSU’s chief investment officer. “Like most, we saw private market investments significantly lagged their public market equivalent benchmarks. However, we continue to view the private markets as attractive over the long term.”
MSU’s endowment funds represent endowed gifts to the university and the university’s long-term investments. The continued growth of the endowment is made possible by donor generosity and sound management, ensuring that MSU remains a leader in higher education for years to come.
More information is available on the university’s endowments webpage.